Vaughn Palmer: Adrian Dix climbs onto the slippery slope of subsidies

Vaughn Palmer, Vancouver Sun columnist04.09.2013

NDP leader Adrian Dix says it doesn’t make sense to lose the film industry to Central Canada, given the work that has been done to build it up here. He proposed boosting the tax credit on labour for the industry to encourage filming in B.C.

VICTORIA - With five weeks to go to the election, the New Democrats summoned reporters Tuesday for a major announcement by party leader Adrian Dix at a sound stage at Vancouver Film Studios.

A vacant, not-in-use sound stage, as Dix observed to a crowd of supporters and film industry types, before sketching out the rationale for increasing provincial tax credits to help “fill” the state-of-the-art facility.

The choice of venues was symbolic for another reason too. The studio is owned by the McLean family and more than one New Democrat noted how paterfamilias David McLean was scarcely one of theirs, having been instrumental in the B.C. Liberal sale of BC Rail to CN.

Ironies notwithstanding, on Tuesday, the interests of Vancouver Film Studios and those of the New Democrats meshed perfectly.

Dix pushed another button: “I don’t think there are many industries as loved by British Columbians.” More glamorous than gill netting, better for the international image than clear-cutting, and few boys and girls of any age fall asleep at night dreaming of a career in hard-rock mining.

But sure enough, the industry is clean, green, it treads lightly on the earth, and who among us doesn’t enjoy spotting familiar B.C. landmarks masquerading as somewhere else in a feature film?

Dix cited several favourites, dating back to the feature role for the city of Nelson in Roxanne, the 1987 Steve Martin-Darryl Hannah remake of Cyrano de Bergerac.

Alas, he did not invoke several more recent vehicles from Vancouver Film Studios, any one of which might have suggested points of comparison to the current B.C. political scene: Conspiracy, the Day the Earth Stood Still, Geek Charming, Bloodsucker and Forest of the Dead.

But seriously.

Dix noted how the current tax credits were brought in by the New Democrats but continued to this day by the B.C. Liberals because “they’ve worked.” For those who oppose film-industry subsidies in principle, neither party offers ideological purity.

The only point of debate between them is whether the financial assistance ought to be increased to meet a challenge from Ontario and Quebec, which have lately been offering even more generous incentives.

Dix served notice, via a trip to Los Angeles earlier this year, that he was leaning toward bumping up B.C.’s credits. With plenty of notice, the Liberals could have scooped his campaign announcement with one of their own. But they stuck to their view that an increase was neither affordable nor necessary.

So Dix reaped the industry accolades, starting with applause and cheers Tuesday as he announced that an NDP government would boost the credit for local labour costs from 35 per cent on domestic productions and 33 per cent on foreign productions to 40 per cent on both kinds.

By retaining the practice of applying the credit strictly to labour, he thus shunned the Ontario and Quebec approach, which is to offer broader relief on costs.

As well as investing in state-of-the art facilities, B.C. has spent a lot in training young British Columbians to work in this industry and Dix believes they too need further protection, lest they be forced to relocate along with the film business.

He reckoned the cost of increasing the credits at $45 million, atop the current payout of $330 million under the Liberals. But the province won’t incur the additional charge until the third year of the program, according to Dix.

Here’s how it works: Producer hires British Columbians to work on a film, pays them for their work, and at the end pulls together all the pay and benefit sheets for approval by the tax department. After vetting, a rebate cheque is cut for the designated percentage of the total labour costs, be it 33 per cent, 35 per cent or, if the NDP wins, 40 per cent.

But the process takes several years, which is why the New Democrats won’t be booking the increased credits until the third year of their “fully costed” election platform, when they get around to releasing it.

The payout is made “only after the work is done,” Dix said, underscoring how the labour cost rebates differ from other incentives (tax cuts, red-tape reduction, low interest loans) that government dangles in advance of investment or job creation.

He noted, too, how B.C. is obliged to do more to fight for its film and television industry because “Central Canada-controlled production means we don’t get our fair share here in B.C.” An echo there of the provincial populism of his mentor Glen Clark, if I’m not mistaken.

He took a shot at the B.C. Liberals for their view that the province needs only to keep a watching brief against the day when deficit-ridden Ontario and Quebec will be forced to scale back their incentives.

“I don’t think it makes sense to sacrifice all that we’ve built that way,” he said. Rather, having encouraged investors to pour their dollars into the industry and young people to dedicate their lives, he believes the province should fight to keep it.

He makes a good case. But now that he’s climbed onto the slippery slope of subsidies, it will be instructive to discover where else he parts with the Liberals on offering incentives to various industries.

Comments

We encourage all readers to share their views on our articles and blog posts. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, and please keep your comments relevant and respectful. If you encounter a comment that is abusive, click the "X" in the upper right corner of the comment box to report spam or abuse. We are using Facebook commenting. Visit our FAQ page for more information.

Share

Vaughn Palmer: Adrian Dix climbs onto the slippery slope of subsidies

Video

Today's Headline Videos

Best of Postmedia

To steel himself for the year-long journey that began Wednesday, Jonathan Pitre has been going over the hard calculus that underpins his decision to pursue a high-risk, high-reward treatment in Minnesota

When he woke up in tears the morning after he had cried himself to sleep, Rohit Saxena knew what he had to do. Leaving his wife, Lesley, asleep in bed, Rohit went downstairs, opened his laptop and began to write. “They say your kids are your hearts outside your body,” he wrote. “I’ll always be […]

Almost Done!

Postmedia wants to improve your reading experience as well as share the best deals and promotions from our advertisers with you. The information below will be used to optimize the content and make ads across the network more relevant to you. You can always change the information you share with us by editing your profile.

By clicking "Create Account", I hearby grant permission to Postmedia to use my account information to create my account.

I also accept and agree to be bound by Postmedia's Terms and Conditions with respect to my use of the Site and I have read and understand Postmedia's Privacy Statement. I consent to the collection, use, maintenance, and disclosure of my information in accordance with the Postmedia's Privacy Policy.

Postmedia wants to improve your reading experience as well as share the best deals and promotions from our advertisers with you. The information below will be used to optimize the content and make ads across the network more relevant to you. You can always change the information you share with us by editing your profile.

By clicking "Create Account", I hearby grant permission to Postmedia to use my account information to create my account.

I also accept and agree to be bound by Postmedia's Terms and Conditions with respect to my use of the Site and I have read and understand Postmedia's Privacy Statement. I consent to the collection, use, maintenance, and disclosure of my information in accordance with the Postmedia's Privacy Policy.